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India Server Market to Reach USD 9.9 Billion by 2033 | 10.17% CAGR | Get Free Sample Report
India Server Market OutlookThe India server market size reached USD 3.9 Billion in 2024 and is projected to grow to USD 9.9 Billion by 2033. The market is expected to grow at a CAGR of 10.17% during the forecast period of 2025-2033. This growth is driven by increased demand for high-density servers in data centers and government initiatives promoting digitalization, smart city projects, and e-governance platforms.
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India Server Market Study Assumption Years
• Base Year: 2024
• Historical Year/Period: 2019-2024
India Server Market Key Takeaways
• Current Market Size: USD 3.9 Billion (2024)
• CAGR: 10.17%
• Forecast Period: 2025-2033
Key Insights:
• Expansion of data centers in India drives demand for advanced servers.
• Government digital initiatives and smart city projects support market growth.
• Increasing investments in IT infrastructure, including AI and ML applications, foster demand for sophisticated servers.
• Growing emphasis on data localization propels local server installations.
• Collaborations among technology and IT solution providers enhance unified server solutions.
India Server Market Growth Factors
The increasing number of data centers has resulted in a rapid increase in the number of high density servers. Hyperscale data centers in India have further increased demand. For example, Larsen & Toubro planned to invest INR 3,600 Crore to set up three data centers in India. Government data localization regulations also create an incentive to build local server infrastructure.
The increasing usage of ML and AI is going to increase the IT infrastructure market. Banks, financial Services, insurance (BFSI), finance, healthcare, and retail companies upgrade IT infrastructure for data security and efficient operation leading to an increase in server installation rates. Government bodies also oversee digital transformation initiatives in the public sector.
However, the quality and capacity of servers from the technology and IT sector has improved in India as technology and IT companies are forming alliances. For example, Giesecke+Devrient (G+D) and Netcetera launched a 3D Secure (3DS) server in Mumbai to improve the transaction time, availability and quality of servers in India.
India Server Market Trends
The digital revolution, rapid adoption of big data analytics, and growth of cloud computing services among cloud service providers (CSPs) are driving demand for scalable data centers in the India server market. The growing trend of work from home is expected to support the growth of data centers in the country.
Also influential in driving demand for servers are the rise of hyperscale data centers that process data at massive scales, demand for data localization, growth of data centers backed by government policies, and expected rise in demand for data centers.
Adoption of artificial intelligence and machine learning across various industries, such as BFSI, healthcare and retail, and growth in investment in IT infrastructure are driving the demand for server infrastructure solutions that improve operational efficiency and improve user experience. Growing digital transformation initiatives undertaken by government agencies propel the demand for advanced server infrastructure.
Another sector for customized innovation in the Indian server market is for transactional efficiency and faster service time. These innovations are enabled by technology collaborations. Rising demand for cloud services and digitalization in different areas of the industry fuels the server market.
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India Server Market Segmentation
Product Insights:
• Rack
• Blade
• Tower
• Micro
• Open Compute Project
Enterprise Size Insights:
• Micro
• Small
• Medium
• Large
Channel Insights:
• Direct
• Reseller
• Systems Integrator
• Others
Vertical Insights:
• IT and Telecom
• BFSI
• Government and Defense
• Healthcare
• Energy
• Others
Regional Insights
• North India
• South India
• East India
• West India
India Server Market Recent Developments & News
• In February 2025, Kalyani Powertrain partnered with AMD to enhance India's server infrastructure, focusing on domestic production and import reliance reduction.
• In December 2024, Lenovo announced plans to manufacture GPU-based servers at its Puducherry plant by mid-2025, positioning it as an export hub. Lenovo also invests in AI-driven server innovations through its Bengaluru lab.
India Server Market Competitor Landscape
The report provides a comprehensive competitive landscape analysis, including market structure, key player positioning, winning strategies, and company evaluations. Detailed profiles of major companies are included to assist stakeholders in competitive assessment.
India Server Market Key Highlights of the Report
• Comprehensive quantitative analysis of market segments and historical trends.
• Insights into market drivers, challenges, and opportunities.
• Porter's five forces analysis to assess industry competitiveness.
• Detailed competitive landscape and company profiling.
• Coverage of all major product, enterprise size, channel, vertical, and regional segments.
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